On Wednesday, Meta Platforms reported its first quarter results which topped expectations as it raised its forecast for this period.
Its stock price increased by 0.89% to $209.40 per share on April 26. Likewise, it is expected to jump by 11.61% to $233.71 apiece in the upcoming session.
The earnings per share of Meta improved to $2.20, beating the analysts’ $2.02 estimates. This latest reading is better than the previous $1.76 data.
Furthermore, its revenue dropped to $28.65 billion, exceeding the $27.61 consensus. However, it is lower than the prior $32.17 billion figures.
The Facebook and Instagram owner company witnessed its shares rise by 11.00% to the highest level since January 2022.
Moreover, it promoted 2023 as its Year of Efficiency, saying it has significantly completed its 2022 layoffs. Also, it plans to continue conducting employee cuts this year.
Meta reported that it would slash 10,000 of its labor force in the previous month. As a result, it is stacking on its last layoff announcement in November.
CEO Mark Zuckerberg said they had a successful quarter, and their community keeps growing.
Additionally, the growth of ad impressions supported the entity’s ad revenue beat. It rose by 26.00% year-over-year in the Family of Apps of Meta, including Facebook, Instagram, and WhatsApp.
Facebook Parent Meta Reported AI to Boost Traffic
Zuckerberg stated on Wednesday that artificial intelligence (AI) would help Meta increase traffic to Facebook and Instagram. It would gather more robust ad sales while quarterly revenue forecasts beat estimates.
The company slowly adopted AI-friendly hardware and software systems for primary business. It carried out many expensive overhauls to strengthen its core business, such as an important project to upgrade AI capacity.
According to Meta, AI recommendations surged time spent on Instagram by 24.00% in the January-March quarter.
Furthermore, an analyst said that several of Meta’s investments went into the advertiser side, similar to Alphabet.
Also, after facing struggles in 2022, a 3.00% YoY revenue growth is an achievement. The strong guidance of Meta for Q2 proceeds hints that the company is recovering.